Shiba Inu Burn Rate Spikes Over 500% Amid Market Recovery, What’s Next?

The Shiba Inu burn rate witnessed a remarkable uptick of nearly 500% on Tuesday, fueling investor optimism amid a broader crypto market recovery. Notably, over 15 million coins were again removed from the asset’s circulating supply, boosting the meme coin’s tokenomics. Simultaneously, SHIB price witnessed a nearly 10% uptick intraday, leveraging the broader market trend and burn rate impact.

Shiba Inu Burn Rate Blows Up Nearly 500%, Investors Optimistic As Supply Shreds

According to an X post by the tracker Shibburn on February 4, the Shiba Inu burn rate surged 493.33% in the past 24 hours. This remarkable upswing is attributable to 15.44 million coins being removed from the crypto’s circulating supply. Further, recent data by the tracker also revealed that the wallet address 0x541f60e557 was responsible for the massive blow to the supply, as it was recorded as shifting 12.67 million coins to a null address.

For context, the SHIB token burn mechanism has constantly dealt a blow to the circulating supply, with nearly 1 billion coins removed just the previous month. These coins are sent to a null address, thereby making their retrieval impossible. At the time of reporting, the meme coin’s market supply further shredded to reach 589.25 trillion tokens.

As a result, traders and investors eye a bullish outlook for the meme coin, a market sentiment based on the law of supply and demand.

Crypto Market Recovery Solidifies Optimism

Meanwhile, the broader market recovery has substantially impacted investors’ sentiment on Tuesday. As a result of the quickest trade war, the crypto market recovered as a 30-day halt on Trump’s new tariffs for Canada and Mexico was announced.

While Bitcoin price recovered and touched a $102K high intraday, altcoins and meme coins mirrored a similar price action. Simultaneously, even the Shiba Inu coin’s price mirrored a recovery, with the burn rate surge further bolstering it.

Can SHIB Price Hit $0.000018 Riding The Burn Rate Surge?

At the time of reporting, SHIB price witnessed an 11% uptick in value and is currently trading at $0.00001560. The meme coin’s 24-hour low and high were $0.00001358 and $0.00001691, respectively. As mentioned above, the current bullish movement falls in line with the broader trend and burn rate uptick.

Further, a recent Shiba Inu price analysis by CoinGape revealed that large transaction volumes for the token surged remarkably, sparking bullish sentiments over future movements. Notably, this data suggests that institutional or large-scale investors may be capitalizing on the recent market volatility to accumulate, signaling price gain looms. The next vital price point for the meme coin to reclaim remains $0.000015, per the analysis.

Intriguingly, with the Shiba Inu burn rate surge and broader market recovery weighing in, the current price is above the level mentioned above. A sustained bullish momentum could help the token move toward $0.000018, supported by the constant reduction of supply with burns.

Another renowned member of the Shiba Inu community has further revealed that the token is eyeing new highs. As per SHIB KNIGHT, the dip is almost over, and it’s time to reach new highs.